Scout licensed to sell in California, secures various permits in other states, records show
(Article is from Automotive News)
Scout Motors’ drive to sell directly to U.S. consumers is slowly getting more traction despite legal challenges from dealers in several states.
In an early, high-profile victory,
Scout in December was awarded a
dealer license in Colorado, and it appears it was not the upstart brand’s first, public documents show.
The Volkswagen Group-backed brand has been licensed to sell vehicles in California, the country’s biggest new-car market, since 2023.
Direct-to-consumer sales
are at the center of Scout’s U.S. marketing strategy but have
drawn strong opposition and, in some cases,
legal action from dealers nationwide.
Scout Motors Sales LLC — Dealer holds an active license in California, according to records at the state’s motor vehicle department. The license was issued on Nov. 17, 2023, and expires on Nov. 30, 2027, according to public records.
The business falls under the automobile/commercial new-vehicle category, according to the record.
A California Department of Motor Vehicles spokesperson said the license allows Scout Motors Sales LLC to sell new vehicles.
Scout Motors Sales LLC’s California record also lists a McLean, Va., address that Scout Motors Inc. uses. Scout’s state records do not detail branches for store locations in California, like records do for
electric vehicle makers Tesla and Rivian.
Scout has what it needs
Scout didn’t reply to questions about specific licenses nor did it detail states where it has secured dealer licenses.
But Cody Thacker, Scout’s vice president of commercial operations, said the brand has received dealer licenses beyond California and Colorado.
“We already have the state dealer licenses and regulatory alignment needed to execute our plan,” Thacker said in an emailed statement to Automotive News. “The public reaction to our mission across America has been overwhelmingly positive.”
Thacker said Scout is fulfilling a promise “to look after the American consumer by giving them transparency and a fair deal.”
Scout in 2025 asked the U.S. government
to take all steps necessary to eliminate state motor vehicle franchise laws, calling them “burdensome restrictions on competition.”
Scout’s
detailed road map to sell the electric Traveler SUV and Terra pickup to American consumers includes experience centers, quick purchase transactions and a flexible
nationwide service footprint at launch.
Scout
has not decided whether it’s going to begin output of both models at the same time or
which of two powertrains will be available first.
Scout CEO Scott Keogh, former head of VW Group of America, in October said the brand had collected 130,000 vehicle reservations.
California lawsuits
Scout,
which plans to produce vehicles starting in late 2027, has high expectations for the nation’s most populated state and the preeminent electric vehicle market.
Los Angeles, San Francisco, San Diego and Orange County are part of the initial 25 markets Scout identified for brand-owned rooftops when it
first unveiled retail plans in October 2024.
The brand had a significant presence outside of the Los Angeles Convention Center during November’s 2025 Los Angeles Auto Show.
Scout received immediate pushback from dealers and dealer associations over the brand’s decision to bypass VW and Audi dealers.
The California New Car Dealers Association and
a group of VW and Audi dealers in Florida in 2025 both sued to block Scout from selling models directly to consumers.
The California New Car Dealers Association also
filed a similar lawsuit against Sony Honda Mobility in August 2025.
The California lawsuit says Scout’s direct-to-consumer model violates a state law that was amended and took effect Jan. 1, 2024. The dealer association considers Scout, wholly owned by Volkswagen AG, to be an affiliate brand of VW. The amended law requires affiliated brands to use franchises to sell and service vehicles, the lawsuit says.
Both lawsuits are ongoing, according to California New Car Dealers Association President Brian Maas.
Maas said it is not difficult to secure a dealer license in California.
“The issue in our lawsuit is about franchisors, the OEMs, competing with their franchisees, the dealers in their dealer network,” Maas said.
Scout appears to have received other types of licenses in a handful of additional states. Here is a breakdown.
Tennessee
Scout received a motor vehicle manufacturer license in Tennessee on Nov. 24, 2025, according to a document on the state’s department of commerce and insurance website. The license expires on June 30, 2027.
A manufacturer’s license in Tennessee authorizes Scout to sell vehicles only to licensed dealers, a Tennessee Department of Commerce & Insurance spokesperson said. Unless Scout has licensed dealers in Tennessee, the brand is not licensed to sell direct to consumers in the state, the spokesperson said.
Arizona
Scout met requirements for an Arizona manufacturer license on Oct. 1, 2025. It allows Scout to franchise an Arizona licensed motor vehicle dealer to sell the product, an Arizona Department of Transportation spokesperson said. Scout may not sell directly to consumers with a manufacturer license, the spokesperson said.
Scout’s manufacturer license in Arizona has a renewal date of Sept. 30, 2026.
Utah
Scout Motors Inc. was issued a Utah distributor license on March 25, 2025. Scout Motors Sales LLC, which shares the same McLean, Va., address, was issued a new motor vehicle dealer license on April 10, 2025. Both licenses expire on June 30, 2026.
A Utah State Tax Commission spokesperson said any business that makes new vehicles is required to be licensed as a distributor with the state’s Motor Vehicle Enforcement Division. The distributor license allows the business to then franchise a Utah dealership to sell new vehicles, the spokesperson said.
Scout Motors Sales LLC can sell new or used vehicles with the dealer license, but the only new vehicles it can sell are vehicles it is franchised to sell, the spokesperson said.
Missouri
Scout Motors Sales LLC was rejected for a two-year dealer license in August 2023, according to a timeline posted on the Missouri Department of Revenue’s website. It was approved for a two-year license in September 2023.
A dealer license renewal in August 2024 was rejected, according to the timeline, along with a resubmission that September.
However, a two-year dealer business license renewal was approved in October 2024, according to state records. The Missouri Department of Revenue received a Scout Motors Sales LLC request for a new dealer license in July 2025 but has not posted any updates.
A Missouri Department of Revenue spokesperson did not respond to a request for comment.